Latest news with #SocialInsuranceSystem
Saudi Gazette
12-08-2025
- Business
- Saudi Gazette
MHRSD to carry out inspection visits to establishments if they delayed disbursing wages for 20 days
Okaz/Saudi Gazette RIYADH — The Ministry of Human Resources and Social Development has decided to carry out inspection visits to private sector establishments if they delayed submitting their wage protection files for 20 days, Okaz has learnt from the ministry sources. The Mudad digital payroll and compliance program, under the ministry, will send a request to the Inspection Department to visit the establishments that have failed in submitting the file within the stipulated period of time. The ministry explained that the procedures begin when wages are due. The Mudad program will send an email notification to the establishment reminding it of the need to upload wage data through the program. After 10 days, another notification will be sent to establishments that have not submitted the file. The ministry noted that a final warning will be sent to employers who have not submitted their wage files, 15 days after the wages are due. If 20 days pass without a response, a request will be sent to the Inspection Department to make an inspection visit of the erring establishments. The Mudad platform announced that the period for establishments to justify the reason for delaying the payment of workers' salaries will be 10 days. It also granted employees a grace period of only three days to accept or reject salary justifications in the compliance system. The platform indicated that if an employee fails to provide a justification within the specified period, the justification submitted by the establishment's representative will be automatically processed. According to the ministry decision, if an establishment delays the disbursement of salaries for two months, it will be penalized by suspending all services except the issuance and renewal of work permits. If the delay exceeds three months, all services will be suspended. Additionally, the worker will be allowed to transfer his services to another employer without the approval of the current employer, even if his work permit is valid. The Mudad platform specializes in providing establishment and employee data from the Social Insurance System, as well as updating and reviewing employee payroll data. It offers its services to micro, small, medium, and large enterprises, with fees starting at SR460 for establishments with nine or fewer workers, SR575 for establishments with 10–29 workers, SR690 for establishments with 30–59 workers, and SR805 for establishments with 60–99 workers. For companies with more than 100 workers and less than 1,000 workers, the subscription fee is SR920. The establishment will not be required to sign any agreements or contracts with banks to manage the payroll system. If the establishment does not sign a contract with the Mudad platform, it will be required to enter into an agreement with banks. Mudad allows business owners to add employees to the platform, even if they are not included in the social insurance system, such as part-time workers. This allows them to add deductions, allowances, or bonuses to employees' salaries before the transfer. The platform enables employers to pay salaries more than once per month, with the possibility of paying salaries to a limited number of employees at a time. As for employees not included in the social insurance system, the system allows them to be added to the system via the Mudad platform. The Mudad platform The platform enables establishments to organize and manage workers' wages, ensuring timely payments and adherence to labor regulations. monitors payroll violations by the employer and allows employees to respond to the justifications submitted by the employer or ministry emphasized that establishments must comply with the Wage Protection Program (WPP) and submit wage files through Mudad to avoid penalties.
Saudi Gazette
30-06-2025
- Business
- Saudi Gazette
New Social Insurance Law comes into force on Tuesday
Saudi Gazette report RIYADH — The provisions of the new Social Insurance Law, issued by a Royal Decree on July 2, 2024, came into force on Tuesday, July 1. The General Organization for Social Insurance (GOSI) announced this, while noting that this law is applicable exclusively to new civil employees, joining the public and private sectors, who do not have any prior contribution periods in the current Civil Pension Law or Social Insurance Law. The amended law stipulates gradual increase in retirement age while there will be no change in the benefits for the current subscribers of GOSI. The organization stated that the statutory retirement age for individuals affected by the amendments will range between 58 and 65 Gregorian years. The organization stated that this law will contribute to expanding the scope of insurance coverage to include more categories and will achieve flexibility in job transfers between the public and private sectors without affecting subscribers' insurance rights, by unifying insurance provisions under the umbrella of a single law. The new regulations, which will be applied to new subscribers to the Social Insurance System, include a gradual increase in the pension branch subscription rates, starting from the second year of the system's validity until the fifth year, by 0.5 percent annually, so that the cumulative increase reaches 2 percent. Hence the subscription rate becomes 11 percent instead of 9 percent for the subscriber and the employer. The law stressed the need for employers to commit to paying subscriptions on their specified dates, in order to preserve the rights of employees subject to the system. The maternity benefit will also be implemented starting Tuesday, July 1. Under this benefit, the GOSI grants female subscribers, whether Saudi or non-Saudi, maternity compensation for three months upon giving birth. The GOSI urged all its customers, both subscribers and employers, to review all the details related to these provisions through the awareness platform on the organization's website or via the GOSI app.
